Explain how asset price bubbles and the financial accelerator can combine to create abanking crisis.
Explain how asset price bubbles and the financial accelerator can combine to create abanking crisis.
Please answer these two questions:1. Explain how asset price bubbles and the financial accelerator can combine to create abanking crisis. What kind of policies should central banks use to prevent crises? 2. What are the transmission mechanisms of Quantitative Easing (QE) and how do they compare with those of conventional monetary policy? Was QE successful? Did it haveany unintended consequences?
